Fraud Paper

767 Words Feb 28th, 2015 4 Pages
Kyle Welch
Fraud Paper In the movie “Office Space”, three men at an Information Technology company begin to commit computer fraud. They embezzle (steal) a fraction of a penny from each of the company’s financial transactions to a separate account of their own. Because the amount of money seems so small, it seems unlikely that anybody would notice the missing money. The fraud they commit in the movie is referred to as misappropriation of assets, which is the embezzlement of company assets by directors, other fiduciaries or employees. Misappropriation of assets is the most common and widespread fraud reported by companies. Whenever an employee commits fraud it is because of three elements, either combined or individually
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The majority of people who commit fraud make excuses such as, what they did was not that serious, or the company owes it to me for what I have done for them. The men in this movie probably do think the company owes them some money, especially after laying some of them off. They might have also thought to themselves, “Nobody will ever know” because the amount of money being stolen seemed so small. The main character might have even thought that the rules did not apply to him after he decided he was not going to go to work anymore earlier in the movie. Together these three reasons make up what is known as the Fraud Triangle make up the foundation for the committing of any type of fraud. Companies can prevent and greatly reduce these types of frauds from occurring by strengthening their internal control, the processes and procedures implemented to provide reasonable assurance that control objectives are met. There are three functions of internal controls. Preventive controls deter problems before they arise, such as hiring qualified employees or segregating employee duties. The second function of internal control is detective controls. Detective controls are designed to discover control problems that were not prevented. Examples could be monthly trial balances or duplicating the checking of calculations. The final type of internal control function is corrective controls, or controls that identify and correct problems as well as correct and

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